Get a Fresh Financial Start With Chapter 7 Bankruptcy

No one ever plans for bankruptcy, but life's circumstances can get in the way of our finances. A medical emergency, lost job or many other unexpected events can cause your financial troubles to spiral out of control. Making the choice to go into bankruptcy may be an answer to your problems. Through bankruptcy, you can prevent repossessions, stop a foreclosure, creditor harassment and alleviate the burden of your debt.

Proverbs 6:5 talks about a bird's freedom from the snare of a fowler. This verse can be likened to debt. Just like the bird who gets more entwined in a trap, you too can fall deeper into debt, even when you are doing your best to come out of it. Debt can keep us awake at night, can cause us to spend more time worrying than praying. It creates an unhealthy environment in many homes, but this can be avoided by taking one bold step to become debt free.

Why You Should Choose Chapter 7 Bankruptcy?

When people talk about filing for bankruptcy, they are referring to Chapter 7. That’s because it is the most straightforward and common type of bankruptcy.

Not everyone can file for Chapter 7, there is an eligibility criterion which you must meet before your application can be put through. For example, your income cannot be over a certain amount, you cannot have previously filed a chapter 7 bankruptcy in the last eight years, or else the courts will dismiss your case. Typically, Chapter 7 bankruptcy will work best for people who:

• Have unsecured debts like credit cards and medical bills. • Have started receiving collection calls and debt notices. Once you file, all collectors are legally prohibited from contacting you. • Do not own much property. Chapter 7 may allow you to keep your car, home, and other valuable items like work jewelry, appliances, furniture, and clothes. • Don't have sufficient income to pay off their bills. This is determined by the means test. • Don't have great credit.

I want to file for bankruptcy, what should I do?

If you are convinced that your financial troubles can be resolved by filing for bankruptcy, the first thing you need to do is gather all your financial records before filling out the bankruptcy petition, schedules, and other documents. You should include all documents which will help in the verification of your financial records. These documents will enable you to comply with any requests by the trustee.

To complete thebankruptcy petition, you must have a list of all your creditors and what you owe them. Information about your income, property and monthly living expenses will also be required in the forms.

What forms do I need to fill?

Chapter 7 bankruptcy can be filed for with a few forms and documents. You can get it as a packet from the bankruptcy court clerk's office or download it for free online. The packet will include:

No, you won't be asked to pay a monthly payment. Chapter 7 bankruptcy is designed to achieve a full discharge. However, if it is determined that you have a surplus income each month after your living expenses have been deducted, the judge may not accept your petition. In that case other options are available such as Chapter 13 bankruptcy which is a structured re payment plan facilitated by the federal judge.

Will a personal bankruptcy case affect my credit?

It's true that filing for bankruptcy will affect your credit score, but if you already have a less than stellar score, then it won't matter much. Your credit report will retain this information for 7-10 years, but after your debt is discharged, you can work to improve your score. The main purpose of personal bankruptcy is to receive a discharge. Once completed, your credit can be redeemed with time.

What is a Means test?

A means test calculation must be completed before filing for bankruptcy. It was added in 2005 to the Bankruptcy Code and calculates whether you can afford, or have the "means" to repay a certain portion of your debts. If you fail the test, you can only file for Chapter 7 bankruptcy with special conditions.

How Can I Find Bankruptcy Lawyers Near Me?

There are Bankruptcy lawyers all over the United States, but please ensure that you choose one with experience. If you are in the San Antonio area, the Law Offices of Martin Seidler, located at One Elm Place, Suite 504, 11107 Wurzbach Rd, San Antonio, TX 78230 is a great place to start. Bankruptcy Lawyers in San Antonio are better equipped to handle cases originating in Texas because of their expertise in Texas bankruptcy proceedings. A skilled San Antonio bankruptcy attorney will help you with your debt, so you can wipe the slate clean for a fresh start.

Your attorney should be emphatic, should answer all of your questions, prepare all necessary documents, and take you through every step of the process. Once you have shaken off the chains of debt, you'll be free to live a life of freedom, gratitude, and generosity.

Disclaimer - This post is made available for informational purposes only and to give you a basic understanding of Chapter 7 bankruptcy. It is not intended to provide legal advice and should not be used as a substitute for competent legal services from a licensed attorney in your state.